THE EFFECT OF A PRIVATE-SECTOR ON THE WAITING TIME IN A NATIONAL-HEALTH-SERVICE

This article examines the effect of a private sector on the waiting ti me associated with treatment in a public hospital. Without rationing o f waiting-list admissions, a private sector is shown to result in a lo nger waiting time if the demand for a public treatment is sufficiently elastic with respect to the waiting time. When waiting-list admission s are rationed, the waiting time is shown to increase if the public se ctor consultants are permitted to work in the private sector in their spare time. (C) 1997 Elsevier Science B.V.